Mrs. Elsie Addo Awadzi, Second Deputy Governor of Bank of Ghana, has blamed the commercial banks’ non-performing loan portfolios on the high number of poorly run businesses in the country.

Speaking at the launch of the IoD-Ghana’s initiative to develop a National Corporate Governance Code, the Second Deputy Governor stated that strong governance in all of corporate Ghana and in public sector institutions as well, is necessary for promoting the socio-economic transformation Ghanaians desire for the country.

“The Bank of Ghana recognizes that good corporate governance in the banking sector alone cannot promote robust and sustainable economic growth for all. The extent to which the banking sector can continue to lend to businesses is directly related to the extent to which corporate Ghana is governed.”
Elsie Addo Awadz

According to Mrs. Elsie Addo, poor businesses management is the cause of festered economic growth in the country. She thus, called all stakeholders to stimulate good corporate governance.

“Poorly-run businesses are the bane of banks’ non-performing loan portfolios, which threaten the viability of the banking system and indeed feeds back into stagnated economic growth as banks shy away from extending more credit. It is therefore in everyone’s interest that we promote best practices in corporate governance nationally to help build strong institutions, industries, and ultimately a strong, inclusive and sustainable economy, and a strong nation.”
Elsie Addo Awadzi

The Second Deputy Governor recognized the efforts that other regulators and indeed other stakeholders are making towards building strong institution. She noted that it is now time to join forces to work on a national code that cuts across industries and sectors and business types and sizes.

The New Company’s Act

Mrs. Elsie Addo paid tribute to Ghana’s new Companies Act of 2019 (Act 992), which she said, has raised the ideals and principles of the companies in the country.

“Indeed, it is encouraging to note that Ghana’s new Companies Act of 2019 (Act 992) which I call the minimum common denominator in governance for all companies of all sizes incorporated in Ghana, has elevated governance standards for all companies.

“Similarly, provisions of the Public Financial Management Act of 2016 (Act 921), the State Interests and Governance Authority Act of 2019 (Act 990), and others, have all raised the bar for the governance of public sector institutions including State-Owned Enterprises to help promote transparency, accountability, and prudence in the management of State resources for the benefit of all Ghanaians”.
Elsie Addo Awadz

Mrs. Elsie Addo asserted that the case for a National Corporate Governance Code is clear. She noted that as a nation, Ghanaians have a shared responsibility to organize their way of doing business according to a set of values that Ghanaians can all identify with. This, she said, will help to secure a future where individual efforts can help achieve outcomes that will make everyone better off.

“The identification and articulation of such values, and a set of principles and prescriptions that will guide how we do business across sectors, will go a long way to help us realise the future we all desire for generations to come.”
Elsie Addo Awadz

The Deputy Governor opined that all over the world, there are examples of how national corporate codes have helped to shape the emergence of viable and world-class businesses fuelled by ethical and effective leadership across.